Off‐farm labor supply responses to permanent and transitory farm income

Chul-Woo Kwon, Peter Orazem and Daniel M. Otto

Agricultural Economics, 2006, vol. 34, issue 1, 59-67

Abstract: A sample of Iowa farm couples is used to evaluate whether off‐farm labor supply decisions respond to permanent and transitory components of farm income. Off‐farm labor supply of both spouses declines in response to increases in permanent farm income. Farm wives also reduce off‐farm labor supply in response to positive transitory farm income shocks. Consequently, one mechanism farm households use to smooth their goods consumption when facing fluctuating farm income is to modify their consumption of leisure. Ability to smooth goods consumption does not imply the absence of liquidity constraints among farm households unless leisure consumption is also smoothed.

Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (15)

Downloads: (external link)
https://doi.org/10.1111/j.1574-0862.2006.00103.x

Related works:
Working Paper: Off-farm labor supply responses to permanent and transitory farm income (2006)
Working Paper: OFF-FARM LABOR SUPPLY RESPONSES TO PERMANENT AND TRANSITORY FARM INCOME (2003)
Working Paper: Off-Farm Labor Supply Responses to Permanent and Transitory Farm Income (2003)
Working Paper: Off-farm labor supply responses to permanent and transitory farm income (2003)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:agecon:v:34:y:2006:i:1:p:59-67

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0169-5150

Access Statistics for this article

Agricultural Economics is currently edited by W.A. Masters and G.E. Shively

More articles in Agricultural Economics from International Association of Agricultural Economists Contact information at EDIRC.
Bibliographic data for series maintained by Wiley Content Delivery ().